{"id":2635,"date":"2020-11-13T13:48:31","date_gmt":"2020-11-13T13:48:31","guid":{"rendered":"https:\/\/filter.watch\/en\/?p=2635"},"modified":"2022-07-08T16:57:20","modified_gmt":"2022-07-08T16:57:20","slug":"the-iran-china-partnership-bad-news-for-tech-companies-a-disaster-for-citizens-rights","status":"publish","type":"post","link":"https:\/\/filter.watch\/english\/2020\/11\/13\/the-iran-china-partnership-bad-news-for-tech-companies-a-disaster-for-citizens-rights\/","title":{"rendered":"The Iran-China Partnership: A Bad Deal for Citizens and Tech Companies"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">In the early months of 2020 the Iranian government announced that the cabinet had approved the draft text of an agreement for a 25 year partnership with China. From the get-go the announcement received a significant amount of attention from the Iranian public and from high-profile political figures, despite few details being made publicly available.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In <\/span><a href=\"https:\/\/multimedia.iranwire.com\/pdf\/China25.pdf\"><span style=\"font-weight: 400;\">July 2020<\/span><\/a><span style=\"font-weight: 400;\"> a number of Iranian outlets published an 18-page document which appears to be a copy of the draft agreement that received government approval earlier in the year. The document is dated to June 2020, and contains some detail about a number of proposed areas of agreement. The publication of the leaked document led to an intensification of the criticism levelled against the proposed partnership deal. These critics included <\/span><a href=\"https:\/\/iranwire.com\/en\/features\/7650\"><span style=\"font-weight: 400;\">more than 100 Iranian public figures, journalists, academics and opposition politicians based in the diaspora,<\/span><\/a><span style=\"font-weight: 400;\"> who wrote to UN Secretary-General Ant\u00f3nio Guterres demanding that the UN intervene to stop the agreement from being signed. They made this call on the grounds that the proposed agreement forgoes Iran's sovereignty.\u00a0<\/span><\/p>\n<p><a href=\"https:\/\/www.petroleum-economist.com\/articles\/politics-economics\/middle-east\/2019\/china-and-iran-flesh-out-strategic-partnership\"><span style=\"font-weight: 400;\">The \u201cIran-China 25-Year Cooperation Program\u201d<\/span><\/a><span style=\"font-weight: 400;\"> (or the \u201cComprehensive Strategic Partnership between I.R. Iran &amp; P.R. China\u201d) is an agreement drawn up between the governments of the two countries that may result in a <\/span><a href=\"https:\/\/www.petroleum-economist.com\/articles\/politics-economics\/middle-east\/2019\/china-and-iran-flesh-out-strategic-partnership\"><span style=\"font-weight: 400;\">$400bn Chinese investment in Iran<\/span><\/a><span style=\"font-weight: 400;\">. Included in the plan are a number of anticipated research and development collaborations between the two countries.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Speculation around the deal captured public attention to the point that Iran\u2019s former President Mahmoud Ahmadinejad also made his criticisms of the proposed deal public. <\/span><a href=\"https:\/\/iranwire.com\/en\/features\/7242\"><span style=\"font-weight: 400;\">According to an article<\/span><\/a><span style=\"font-weight: 400;\"> published on the pro-Ahmadinejad site <\/span><i><span style=\"font-weight: 400;\">Dolat-e Bahar <\/span><\/i><span style=\"font-weight: 400;\">[\u201cThe Government of Spring\u201d], Ahmadinejad gave a speech in Gilan on June 27, where he stated: \"We have heard that they are negotiating and want to sign a new 25-year agreement with a foreign country, and no one knows [anything] about it.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400;\">There are significant doubts about whether such an ambitious agreement could ever be signed, or indeed delivered. However, based on the leaked document, one significant aspect of the proposed deal is Iran\u2019s willingness to collaborate with China on its Internet localisation project. The document also provides some additional details around the potential scope of the proposed collaboration.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Over the last decade, Iran has insisted that the National Information Network (NIN) project\u2019s primary goal is to establish Iranian sovereignty in cyberspace. However, the extent of collaboration envisioned with China in the leaked draft leaves no doubt that by \u201csovereignty\u201d, Iran envisages its disconnection from the global web, and of its connections to Western Europe and North America. Indeed, based on the leaked document, it can be concluded that NIN\u2019s localisation plan seeks to achieve the localisation of cyberspace and the expansion of information controls, even at the expense of deepening its dependency on a global power such as China.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The collaboration and partnership proposed in the leaked document has serious implications for the digital rights of Internet users, and the continued vitality of the digital economy sector in Iran.\u00a0 The proposed partnership once again demonstrates how a lack of meaningful measures protecting digital rights can leave both users and private companies in Iran highly vulnerable to aggressive government interventions.\u00a0<\/span><\/p>\n<h2><b>The Deal On ICT Cooperation<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The 18-page leaked document contains a section labeled \u201cICT Cooperation\u201d, under which a number of bullet points outline the envisioned areas of collaboration between the two countries. These areas include the development of:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">5G;<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Essential services (including search engines, email services, and messaging apps);<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Equipment for long-distance communication (including GPS navigation, network switches, servers, and data hosting);<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">User equipment (mobile phones, tablets, laptops);<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Software (mobile and computer operating systems, browsers, anti-virus software).<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Other proposed areas of collaboration in the document include:\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Defining joint experimental projects in the areas of smart technology and AI;<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Implementing partnerships between higher education institutions, and fostering collaboration among technology start-ups;<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">In other sections of the document further collaborations are discussed relating to the establishment of IXPs and data transition lines (including undersea cables).<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Although the leaked document does not give us a fully comprehensive image of precisely what form these collaborations might take, it is apparent that ICT and Internet infrastructure development will constitute a central area of collaboration between the two countries. This fact has been repeated outright by Iranian politicians: in September 2020, Iranian MP Mohammad Saleh Jokar <\/span><a href=\"https:\/\/www.rferl.org\/a\/iran-china-national-internet-system-censorship\/30820857.html\"><span style=\"font-weight: 400;\">confirmed<\/span><\/a><span style=\"font-weight: 400;\"> to the media that Iran and China would collaborate on the delivery of the National Information Network.\u00a0<\/span><\/p>\n<h2><b>Iran and China: United Against Digital Rights<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Governments seeking to expand their information control and surveillance capacities are increasingly turning to internet localisation strategies in order to achieve greater levels of control over their populations in online spaces. Confluences in Iran and China's appraisals of the internet go beyond just a shared fear of its potential to democratise mass communications and the media; fears expressed in <\/span><a href=\"https:\/\/www.lrb.co.uk\/the-paper\/v41\/n19\/john-lanchester\/document-number-nine\"><span style=\"font-weight: 400;\">China's \u201cDocument Number 9\u201d<\/span><\/a><span style=\"font-weight: 400;\"> about the ideologically \u2018Western\u2019 nature of the internet are shared by a significant segment of Iran\u2019s leadership (<\/span><a href=\"https:\/\/medium.com\/filterwatch\/saied-reza-ameli-the-new-face-of-irans-online-cultural-revolution-ff3e2cca6b03\"><span style=\"font-weight: 400;\">such as Supreme Council of Cultural Revolution Secretary Saied Reza Ameli<\/span><\/a><span style=\"font-weight: 400;\">). This is one reason that both countries are so openly committed to developing what they call \u201csovereign cyberspace\u201d, in place of the concept of the open global Internet.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It is too early for us to understand exactly how the two states\u2019 ideological convergence might manifest in their delivery of the 25-Year Cooperation Program, however the development of a formal long-term collaboration on internet localisation will doubtless have devastating effects for the digital rights of internet users in Iran.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">With the development of domestic messaging apps, legislation for \u201cLegal VPNs\u201d, and investment in the production of domestic mobile phones, it is becoming clear that Iran's Supreme Council for Cyberspace (SCC) sees the future of information controls (and the NIN) in the development of a \u201clayered filtering\u201d regime. This is a vision that Iranian and Chinese authorities share. In fact, the best examples of what an Iranian layered filtering regime may look like in reality has recently been tested in China. In recent months, <\/span><a href=\"https:\/\/www.scmp.com\/abacus\/tech\/article\/3105106\/chinese-browser-helped-users-bypass-great-firewall-disappears-after\"><span style=\"font-weight: 400;\">a number of apps and browsers<\/span><\/a><span style=\"font-weight: 400;\"> have been briefly introduced in China that claimed users could legally access some censored international content, so long as these apps were linked with one\u2019s national legal ID.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Although the projects named in this leaked document do not directly demonstrate collaboration on the implementation of information controls in Iran, it is impossible to imagine a meaningful ICT partnership between these two countries that does not see Iran drawing upon China\u2019s technological expertise in this realm.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This leaked document must serve as a serious warning to all those concerned about digital rights in Iran. Even if the collaboration does not take place strictly within the confines of the 25-Year Cooperation Program, Iran\u2019s willingness to engage with the Chinese state in its development of the NIN will undoubtedly have serious and long-lasting consequences for the digital rights of Iranians.\u00a0<\/span><\/p>\n<h2><b>A Dark Future For Iranian Startups?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">As well as threatening the further decay of digital rights, the expansion of collaborations between China and Iran in the development of a localised internet may also have serious negative consequences for the digital economy in Iran, and particularly for tech startups.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In the last decade, we have witnessed significant growth in Iran\u2019s digital economy, where a number of tech start-ups have thrived. Largely, these young companies can be divided into two groups: those that benefited from the filtering of foreign-based services, and those that benefited from the forced isolation of the Iranian economy due to the imposition of sanctions.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Both of these groups stand to lose out from such a close collaboration between the Iranian government and Chinese state-backed companies. Companies such as Tencent, Baidu, and Huawei Technologies are unlikely to undertake development of the Iranian NIN unless they stand to make financial gains from this endeavour in Iran\u2019s closed market. If Iran were to call on these companies to support the implementation of the NIN, it could certainly make assurances about their future dominance in the Iranian market.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This risk is heightened in light of the fact that without proper protections such as net-neutrality, Iranian authorities have significant power to pick and choose the market\u2019s winners. As we have seen in the development of domestic messaging apps, the state is not afraid to pick winners, or to dedicate significant resources to them if such a move could benefit the advancement of its localisation project.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The combination of Iran\u2019s willingness to use its powers to guarantee a significant market share for Chinese companies, as well as the fact that these companies can deploy significantly more resources than their Iranian counterparts could lead to even established local companies such as Snapp and Digikala standing to lose from this deal. There is even the potential for them to be muscled out of the domestic market by their Chinese competitors.\u00a0<\/span><\/p>\n<h2><b>Conclusion \u2013 A Bad Deal<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The Iran - China deal as outlined in the leaked document makes one thing clear: Iran\u2019s Internet localisation project may bring a short-term windfall for some internet startups, but the absence of meaningful protections for basic digital rights constitutes a serious threat to the future of the domestic digital economy in Iran.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Yet the deal that may accelerate the localisation of the internet in Iran may ironically end up sacrificing Iran\u2019s emerging domestic technology sector in favour of state-backed Chinese enterprises. In this sense, the proposed agreement is one of the clearest demonstrations yet that Iran\u2019s digital economy sector must prioritise seeking meaningful legal safeguards for basic digital rights, such as net neutrality and data protection.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Iranian start-ups cannot simply trust the pro-digital economy rhetoric of some Iranian officials. It is impossible to imagine that Iran\u2019s ICT Minister Mohammad-Javad Azari Jahromi and his team, who portray themselves as the voice of Iran\u2019s startup community, have not played a significant role in drawing up the blueprint for expansive ICT sector collaboration between the two countries.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The blueprint outlined in the leaked document makes it clear that the battle for fundamental digital rights in Iran is a shared struggle across all sections of society and the digital economy. With the exception of a small group of state-backed technology companies, Iran\u2019s private sector has just as much to lose as the general public from this deal.\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In the early months of 2020 the Iranian government announced that the cabinet had approved the draft text of an agreement for a 25 year partnership with China. From the get-go the announcement received a significant amount of attention from the Iranian public and from high-profile political figures, despite few details being made publicly available.\u00a0<a class=\"more-link\" href=\"https:\/\/filter.watch\/english\/2020\/11\/13\/the-iran-china-partnership-bad-news-for-tech-companies-a-disaster-for-citizens-rights\/\">Continue reading <span class=\"screen-reader-text\">\"The Iran-China Partnership: A Bad Deal for Citizens and Tech Companies\"<\/span><\/a><\/p>\n","protected":false},"author":4,"featured_media":2637,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[3],"tags":[93,62,75],"class_list":["post-2635","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investigations","tag-china","tag-digital-economy-in-iran","tag-localisation","entry"],"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/filter.watch\/english\/wp-json\/wp\/v2\/posts\/2635","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/filter.watch\/english\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/filter.watch\/english\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/filter.watch\/english\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/filter.watch\/english\/wp-json\/wp\/v2\/comments?post=2635"}],"version-history":[{"count":0,"href":"https:\/\/filter.watch\/english\/wp-json\/wp\/v2\/posts\/2635\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/filter.watch\/english\/wp-json\/wp\/v2\/media\/2637"}],"wp:attachment":[{"href":"https:\/\/filter.watch\/english\/wp-json\/wp\/v2\/media?parent=2635"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/filter.watch\/english\/wp-json\/wp\/v2\/categories?post=2635"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/filter.watch\/english\/wp-json\/wp\/v2\/tags?post=2635"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}